CNX-BANK NIFTY-A TECHNICAL VIEW--4-2-2016

CNX--BANK NIFTY

Closed at 14834.05 on 3-2-2016(Open-14897.40/High-14947.80/Low-14777.75)

Support:-14754.65/14709.10/14338.65/13414.30.

Resistance:- 14858.50/14973/15130.35/15136.85/15300/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

As you are well aware that it is already in the long term bear market (see my earlier post) and today opened with a down gap and went down further. In fact it has been falling relentlessly for last three days and clocking a loss of more than 200 point every day which exhibits tremendous weakness in it. Today it came close to its recent bottom of 14754.65 but respected it but looking at the overall technical setup it is not likely to hold and may break it and seek much lower levels in coming days / weeks. It is needles to mention here that it a sell on the rise market now and buying is out of question till it shows some visible strength at lower levels.

For 4-2-2016 can sell on the rise but below 15136.85 for the entire remaining week with a stop loss of above 15180 thereafter sell on the rise at appropriate points(with proper stop losses with the help of support and resistance points)  but not above 15540 with an ultimate stop loss of above 15580. Sell for sure below 14754.65 for the entire month of February-2016 with a stop loss of above 14810.

Remark:-The long term trend is still down. It is clearly a sell on the rise market now; therefore buying should not be attempted for in between short up moves now.

  

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

                                                                                     

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.